Chrysler 2014 Annual Report Download - page 263

2014 | ANNUAL REPORT 261
The Merger was completed and became effective on October 12, 2014. The Merger, which took the form of a reverse
merger resulted in Fiat Investments N.V. being the surviving entity which was then renamed Fiat Chrysler Automobiles
N.V.. On October 13, 2014, FCA common shares commenced trading on the NYSE and on the MTA. The last day of
trading of Fiat ordinary shares on the MTA, Euronext France and Deutsche Börse was October 10, 2014. The Merger is
recognized in FCA’s financial statements from January 1, 2014 and FCA, as successor of Fiat, is the parent company.
As the Merger resulted in FCA being the surviving entity, all Fiat ordinary shares outstanding as of the Merger date
(1,167,181,255 ordinary shares) were canceled and exchanged. FCA allotted one new FCA common share (each having
a nominal value of €0.01) for each Fiat ordinary share (each having a nominal value of €3.58). FCA also issued special
voting shares (non-tradable) which were allotted to eligible Fiat shareholders who had elected to receive special voting
shares. On the base of the requests received, FCA issued a total of 408,941,767 special voting shares.
SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The 2014 Company financial statements represent the separate financial statements of the parent company, Fiat
Chrysler Automobiles N.V., and have been prepared in accordance with the legal requirements of Title 9, Book 2 of
the Dutch Civil Code. Section 362 (8), Book 2, Dutch Civil Code, allows companies that apply IFRS as adopted by the
European Union in their consolidated financial statements to use the same measurement principles in their company
financial statements. The accounting policies are described in a specific section, Significant accounting policies, of
the Consolidated Financial Statements included in this Annual Report. However, as allowed by the law, investments in
subsidiaries and associates are accounted for using the net equity value in the Company financial statements.
With reference to the Merger, it has been accounted for using the “pooling of interest method”, therefore comparative
figures for the year ended December 31, 2013 have been adjusted as if the companies had always been merged.
Format of the financial statements
Given the activities carried out by FCA, presentation of the Company Income Statement is based on the nature of
revenues and expenses. The Consolidated Income Statement for FCA is classified according to function (also referred
to as the “cost of sales” method), which is considered more representative of the format used for internal reporting and
management purposes and is in line with international practice in the industry.